What is the balance of D's capital account at the end of the second year?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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Question: What is the balance of D's capital account at the end of the second year?
Transcribed Image Text:D.
CD partnership begins its first year of operations with the following capital
balances: C, Capital, P224,0003;
D, Capital, P112,000. According to the
partnership agreement, ali profits will be divided as follows: C and D will
be allowed salaries of P268,800 and P134,400, respectively. The partners
will be allowed with interest equal to 10% of the beginning capital balances
C will be allowed a bonus of 10% of the net income after bonus. The
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Transcribed Image Text:Chapter 2
Partnership Operations
remainder will be divided as follows: on the basis of the beginning capital
for the first year and equally for the subsequent years. Each partner is
allowed to withdraw up to P11,200 per year. In the first year of operations,
the income summary has a debit balance of P16,800 and a credit balance of
P61,600 in the second year of operations.
withdraws the maximum amount from the business each period.
Assume that each partner
4. What is the balance of D's capital account at the end of
the second year?
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